“The total of all revenue or receipts usually for a given period except receipts or returns of capital,” or “all income derived from any source except for items specifically excluded by law and deductions of certain outlays (as cost of goods sold or expenses in connection with rental income).”

Gross income is one of the main components that the US Federal and State governments assess in order to determine how much income tax corporations, individuals, and trusts have to pay.

In a Supreme Court case, it was once stated that “income may be defined as the gain derived from capital, from labor, or from both combined, provided it is understood to include profit gained through a sale or conversion of capital assets.”